As we roll into 2025, Utahns will see some changes to state laws, particularly concerning car insurance and electric bicycles (e-bikes). These updates aim to enhance safety, clarify regulations, and provide better financial protection for everyone. Here’s a breakdown of what you need to know.
Increased Minimum Car Insurance Coverage
One of the most significant changes affecting Utah drivers is the increase in minimum car insurance liability coverage. This change is set to take effect for all new and renewed policies on or after January 1, 2025.
What’s Changing?
Utah law previously required drivers to carry liability insurance with minimum limits of 25/65/15. These numbers represent:
- \$25,000 for bodily injury or death per person
- \$65,000 for total bodily injury or death per accident
- \$15,000 for property damage per accident
Starting January 1, 2025, the new minimum liability limits will be 30/65/25, meaning:
- \$30,000 for bodily injury or death per person
- \$65,000 for total bodily injury or death per accident (This remains unchanged)
- \$25,000 for property damage per accident
This increase also applies to uninsured and underinsured motorist coverages.
Why the Change?
The increase in minimum coverage aims to provide better financial protection for drivers and victims of car accidents. With higher limits, individuals involved in accidents will have increased financial resources to cover medical expenses, property damage, and other related costs.
Impact on Your Insurance Policy
If you have an existing car insurance policy with the old minimum limits, your insurance company will need to update it to meet the new requirements when your policy is renewed on or after January 1, 2025. This change will likely result in a slight increase in your insurance premiums. However, it offers a larger safety net in the event of an accident.
Key Takeaways for Car Insurance
- New Minimums: On January 1, 2025, the minimum car insurance liability coverage will increase to \$30,000/\$65,000/\$25,000.
- Policy Renewal: All existing policies with lower limits will automatically be updated to the new minimums upon renewal on or after January 1, 2025.
- Potential Premium Increase: Expect a potential increase in your insurance premium as a result of the increased coverage.
- Unchanged Total Maximum: Note that the total maximum for bodily injury or death per accident remains at $65,000.
E-Bike Law Updates
In addition to car insurance changes, Utah has also updated its laws regarding electric bicycles, or e-bikes. These updates, which went into effect on May 1, 2024, aim to clarify the definitions of different types of e-bikes and ensure they are used safely and responsibly.
New Definitions for E-Bikes
Utah has become the first state to proactively address issues surrounding the increasing variety of e-bikes. The new law, HB 85, introduces definitions for “multiple-mode electric bicycles” and “out-of-class electric vehicles (OCEVs).”
Multiple-Mode Electric Bicycles: These are e-bikes that can switch between the three established class modes. The three classes of e-bikes are:
- Class 1: Pedal-assist e-bikes with a motor that provides assistance only when the rider is pedaling, up to a maximum speed of 20 mph.
- Class 2: Throttle-assisted e-bikes with a motor that can propel the bike without pedaling, up to a maximum speed of 20 mph.
- Class 3: Pedal-assist e-bikes with a motor that provides assistance up to a maximum speed of 28 mph.
Out-of-Class Electric Vehicles (OCEVs): This category refers to electric vehicles with less than four wheels that do not meet the definition of an “electric-assisted bicycle” and typically have unrestricted top speeds. These are now considered motor vehicles and are subject to applicable motor vehicle laws when used on public roads or public lands.
Disclosure Requirements for OCEVs
To ensure transparency, sellers of OCEVs are now required to provide a clear and conspicuous disclosure to prospective buyers, stating that these vehicles are not classified as e-bikes and are considered motor vehicles, which may impact insurance coverage. This disclosure must be provided at the time of sale and in all advertising materials, including online and social media posts. The disclosure reads:
“THIS VEHICLE IS NOT AN ‘ELECTRIC ASSISTED BICYCLE’ AS DEFINED BY UTAH MOTOR VEHICLE CODE AND IS INSTEAD A TYPE OF MOTOR VEHICLE AND SUBJECT TO APPLICABLE MOTOR VEHICLE LAWS IF USED ON PUBLIC ROADS OR PUBLIC LANDS. YOUR INSURANCE POLICIES MAY NOT PROVIDE COVERAGE FOR ACCIDENTS INVOLVING THE USE OF THIS VEHICLE. TO DETERMINE IF COVERAGE IS PROVIDED YOU SHOULD CONTACT YOUR INSURANCE COMPANY OR AGENT.”
E-Bikes on Trails
E-bikes are generally allowed on non-motorized state and local trails, unless prohibited by specific regulations. They must follow the same laws as regular bicycles.
Ensuring Compliance
Failure to comply with these regulations, such as falsely advertising OCEVs as e-bikes, can lead to lawsuits. Violators may face injunctions, damages, and responsibility for attorney fees and court costs.
Key Takeaways for E-Bikes
- Multiple-Mode E-Bikes Defined: E-bikes that can switch between Class 1, 2, and 3 modes are now clearly defined.
- OCEVs are Motor Vehicles: Vehicles that don’t meet the definition of an e-bike are now classified as motor vehicles and are subject to motor vehicle laws.
- Disclosure Requirement: Sellers of OCEVs must disclose to buyers that these are not e-bikes and may not be covered by standard insurance policies.
- E-bike Rules: E-bikes follow the same rules as regular bikes and can be used on trails unless otherwise restricted.
- Class Definitions: E-bikes are classified into three classes based on their motor assistance and speed capabilities.
Other Notable Utah Law Changes in 2024
While the car insurance and e-bike laws are significant, several other laws passed in 2024 impact various aspects of life in Utah. Here are some notable mentions:
- Lane Filtering: Effective May 1, 2024, a new law clarifies that lane filtering is permitted on off-ramps.
- Road Rage: Effective July 1, 2024, amendments to road rage laws went into effect.
- DUI Offense: Effective July 1, 2024, changes to DUI offense laws have been implemented.
- License Plates: Starting January 1, 2025, revisions to license plates will take effect.
- Employee Confidentiality: A new law makes void any confidentiality agreements that prohibit disclosure about sexual assault or harassment. This law is retroactive to January 1, 2023.
- Housing and Land Use: Several changes were made to housing policies, including the creation of new financing mechanisms for affordable housing development.
- Livestock Grazing, Criminal Justice, and Environmental Quality: Various amendments were made to laws concerning these areas.
Conclusion
Staying informed about new laws is essential for all Utah residents. The changes to car insurance minimums and e-bike regulations are particularly noteworthy, as they impact many people’s daily lives. By understanding these updates, Utahns can ensure they are compliant, safe, and adequately protected. As always, if you have specific questions or concerns, it’s best to consult with an insurance professional or legal advisor.
